THQ has cancelled work on horror game Insane and given all rights back to film director Guillermo…
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Movie site Bloody Disgusting is reporting that the game idea, which is actually planned to be a trilogy, was shipped around to other studios and... picked up by the very first place he went.

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They don't know where—given it's a movie site, the info may well have come from that side of the business—but if true it's certainly good news for fans of Del Toro, horror games and Lovecraft.

UPDATE—Ah, seems they're referencing thisIGN interview, where Del Toro says "We were going to go to a lot of developers after THQ, but it seems like we're going to be developing it after the first meeting we had. I can't disclose where it was, but we went to a great developer on the first meeting and it seems that they're picking it up because they love the package."